Armed Forces Help to Buy

Armed Forces Help to Buy

Armed Forces Help to Buy

St Barts Finance has just opened its third office in Salisbury which is predominately populated by armed forces personnel and ex-service men and women. At our offices in Salisbury, we regularly help armed forces personnel utilise the Forces Help to Buy scheme to purchase their first home.

What is the Forces Help to Buy scheme?

In short, this scheme allows armed forces personnel to borrow a maximum of 50% of their annual salary capped at £25,000 which can then be used towards the property purchase. It can be used for costs such as deposits, land registry and legal fees.

The amount borrowed is paid back out of your salary and you can choose one of the 3 ways to start paying back.

  • Straight away – the amount you borrow is divided by 120 and then paid back monthly over a 10 year period from your armed forces salary. You will have your first deduction the month after you receive the help to buy loan.


  • 6 Months after – This option proves popular among service men & women as the help to buy scheme is normally used for first time buyers. This gives you a payment holiday before you start repaying the original loan. First time buyers tend to choose this option due to increased costs when moving into their first homes with furnishings extra bills etc. Once the six months is over you will begin to have the loan deducted on monthly basis in the same way as above.


  • Last 10 years of service – You can opt to pay back the loan in your last ten years of service. This can defer the payments and some clients choose this option as they believe that their monthly outgoings would have reduced by this stage. Reduced outgoings and increased earnings would mean that the payments are more affordable on a monthly basis.


What is the criteria for armed forces help to buy?

There is some criteria to being accepted for the Forces Help to Buy Scheme and every case is assessed individually. You must be in regular service unfortunately this scheme is not for Territorial Army Personal.

If you are serving in the royal navy, you must have been accepted onto trained strength. Army and RAF personnel must have completed a minimum of two years service and every service man or woman must have more than six months left to serve.

A common misconception is that you must be married or have children to apply for this scheme which is not true and single armed forces personnel can also apply.

Is this scheme just for First Time Buyers?

The armed forces scheme is designed for personnel to buy their first home or if they need to purchase a property due to being assigned elsewhere. It will also be considered for extenuating family or medical circumstances these cases will be assessed individually.

The scheme is intended for the occupation of the service man or woman or immediate family, it cannot be used for investment properties.

There is an exception to this if you are posted overseas at the time of the application for the forces help to buy but intend to use the property as your main residence on return from your posting.

Is their interest charged on the forces help to buy scheme?

No there is no interest charged on the loan and you will only pay back what you have borrowed.

Your payments are deducted at source so you will not have to make a monthly payment from your bank account as they are deducted straight from your wages.

How do you apply for this scheme?

The first stage is applying internally for the Forces Help to Buy scheme. This can be done online and is a self-service application form alternatively seek advice from the admin team at your base.

The second stage is getting approved for the mortgage itself. St Barts Finance has a team of professional mortgage advisors and access to a wide range of mortgage lenders and can help you get the mortgage you need.

Book an appointment with us online over the phone or by popping into one of our three offices. We can help clients nationwide and can even work with armed forces personnel when they are posted outside of the UK.

Once you have made contact you will have an initial consultation this allows the adviser to understand what you are looking to achieve and more about
your personal circumstances.

What other factors can affect getting a mortgage for armed forces personnel?

Regular moves are part and parcel of the job when you are part of the armed services and this can have a negative effect on your credit score in the long run.

We understand this is just part of the job and work with mortgage lenders from our panel who are happy to help armed forces personnel who have moved a lot or have minor credit blips.

Why you should use a mortgage broker when applying for an armed force help to buy mortgage?

As a mortgage broker we have access to a vast range of mortgage lenders throughout the UK this allows us to find a suitable mortgage for your needs based on your individual circumstances.

As an armed forces man or woman, you will have individual needs that vary to the standard mortgage applicant due to the nature of your employment. Working with a team of mortgage brokers that understand your employment type address history and pay structure is crucial to the success of your mortgage application.

With an office in the centre of Salisbury we regularly advise on mortgages for service men and women and doing so regularly allows us to build up our expert knowledge and help service men and women just like you get the mortgage you need.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.